Friday, 6 January 2017

MONEY AND CREDIT NEWS



in the case of early times people used to exchange one commodity for another depending on their requirement under the barter system-, however exchanging goods in the barter system required double coincidence of wants and the case of money eliminates the need for double coincidence of wants, since money enables the exchange process, its also called medium exchange and the early forms of money were things of daily use,in india the reserve bank of india is the only legal authority that can issue currency notes and coins on behalf of the central government, the rupee is indias currency and nobody can refuse to accept a payment made in rupees in india ,moder currency- uses paper notes and coins made of relatively inexpensive metals, has no value of its own, has a value only because it is authorised by the government of a country..people deposit their extra cash in bank , A bank in addition to keeping the money also pays interest on the deposit to the depositer, thus the bank deposits are also called demand deposits, a person simply needs to have an acount with the bank to deposit money, A cheque can be used to make payment directly from a bank deposit without using cash, a cheque is a writtern instruction to a bank by an acount holder to pay specific sum to a specific person from his deposit, A cheque has all the information about the person to whom payment is to be made , the amount and date of payment and signature of acount holder issuing the cheque ...